Candle Media undergoes a cost-cutting reorganization

Candle Media, the young media company backed by private equity firm Blackstone, is undergoing a restructuring to cut costs.

Founded in 2021 by former Disney executives Kevin Mayer and Tom Staggs, the company made several spectacular acquisitions at the start – including Reese Witherspoon’s production label Hello Sunshine. Three years later, content buyers who like to spend are back down to earth (and with them their respective share prices).

diversity has confirmed that Mayer and Staggs have consolidated their production businesses into two divisions: live-action film production will now fall under the purview of Hello Sunshine CEO Sarah Harden, who will retain her title at Witherspoon’s studio; and animation will now be exclusively at Candle’s profitable MoonBug, the label behind the family-owned CocoMelon, which airs on Netflix.

Details of cost-cutting and possible job cuts were not immediately clear. Mayer and Staggs first announced the new structure at a Semafor event last week. Harden’s new operation will be called Candle Studios. Her responsibilities include Hello Sunshine (producer of “The Morning Show” and “Little Fires Everywhere”) as well as the titles Exile, True Stories and Faraway Road (“Fauda”).

The new studio division will share resources such as business affairs, legal, production services, facilities and equipment, and will have a coordinated sales and distribution process aimed at both domestic and international buyers.

“I am thrilled to take on an expanded role at Candle Media, supporting the growth of these incredible businesses and identifying new growth opportunities,” said Harden. “I am so proud of what we have built at Hello Sunshine and look forward to continuing my role as CEO.”

The newly consolidated Candle Studios will produce over 30 top-notch originals this year, including season 2 of “The Last Thing He Told Me,” season 4 of “The Morning Show” and “Extreme Home Makeover.”

During the Semafor meeting, Mayer acknowledged that Blackstone’s $1 billion bonus payment came at an unfortunate time.

“We paid the highest price in the market. Have the financials developed as we would like to justify the prices we paid? Probably not,” he told the publication, adding: “Talk to us in two or three years.”